Currency Devaluation Is Initiated by Governmental Policy Rather Than the Free-Market

question 33

True/False

Currency devaluation is initiated by governmental policy rather than the free-market forces of supply and demand.

---

Definitions:

Maturity Risk

The risk associated with the time until a financial instrument reaches its maturity date, impacting its price and interest rate risk.

Interest Rates

The percentage charged on the total amount of borrowed money or paid on deposited funds.

Maturities

The set dates when the principal amount of a debt instrument, such as a bond, is due to be paid back to the investor.

Bond Prices

The market value of a bond, which inversely changes with interest rates.